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6 Weeks and nothing..EMC Short sale...

So my fiance and I have put an offer in on a home that has been in the short sale process for quite some time.  There has only been one offer previous to us(months ago) and it never went through, the people backed out because the bank wouldn't pay all of the closing costs.  Well we put an offer in for the bank to pay half of the closing costs and the realtors thought that would be okay.  Well we're approaching our 7th week with nothing from the bank.  The selling realtor said the owners of the home hired a lawyer and she's waiting to hear back from him and he had told her NOT to contact the mortgage company but to just wait to hear from him.  Well I went on the Clerk's website and the only lawyer involved on this foreclosure is the Mortgage companys and it's listed that the defendents are representing themselves. Something is not adding up.  Originally we were told there was negotiator assigned and we should hear back something soon.  Nothing!  I took it upon myself to call the mortgage company(EMC) and they obviously couldn't give me any information regarding that specific short sale but they did however say, you should hear back between 2-3 weeks if an negotiator is assigned and 4-6 weeks if not. I'm beyond frustrated because the courts are getting this case rolling again and it's about to go into foreclosure.  Our realtor and our broker have both gone to the selling realtors office and have gotten no where, they just keep saying we're waiting and blah blah.  Is there anything we can go do?  Also which I find weird is that the selling realtor told us the last offer took 4 months to hear back and she said this one shouldn't take as long but no shes saying it's going to be another 3 months from now to hear anything which would put us in over 4 months.. Completely frustrated and would love some good advice.  Thanks! :)
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1st Lien Holder requiring Seller Contribution

Can a 1st lien holder require the seller to make a cash contribution? The 1st is with GMAC, the negotiator told us the seller had to contribute, they would not allow the buyer to contribute. Does anyone have a good contact at GMAC?

Bob Kelly 619-445-6556

Prudential California Realty

La Mesa, Ca.

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Possibly. I had a member of Short Sale Superstars wonder why a Mortgage Insurance Company would let a property go to foreclosure instead of agreeing to a Short Sale now. The property is in a non-recourse State so the Seller is protected from any deficiency judgments after a foreclosure. So why wouldn't the MI just settle now and be done with it?


First, let's define what Mortgage Insurance is. There are 2 kinds of Private Mortgage Insurance (MI).

  • BPMI. Borrower Paid Private Mortgage Insurance
  • LPMI. Lender Paid Private Mortgage Insurance

MI coverage can be for 20% or more of the initial loan amount. MI offsets the loss incurred by the Lender/Investor when a mortgage loan defaults.

For example: Mr Smith (Borrower) purchased a property for $200,000 in 2004 and put 20% down. His mortgage was for $160,000. Federal Trust Bank (Investor) bought the loan from Wells Fargo (Lender/Servicer) and decided to protect their investment by purchasing MI for 32% of the loan amount. So Wells Fargo buys an insurance policy (LPMI) from Genworth Mortgage Insurance Company. As part of this insurance agreement Wells Fargo gives Genworth the authority (delegates) to decide whether a defaulted loan is foreclosed on or a Short Sale is accepted.

In 2010 Mr Smith goes into loan default and attempts to do a Short Sale. Even though the Investor, Federal Trust Bank, now owns the loan, Mr Smith still makes payments to his "Lender" Wells Fargo. His REALTOR(R) finds a buyer and submits the Short Sale request to Wells Fargo. Wells Fargo submits the request to Federal Trust Bank. Federal Trust Bank has to submit the Short Sale to the MI Company, Genworth, who has the final authority.

Remember the Mortgage Insurance Company is paying out on the amount of the loan NOT the value of the property.

Let's assume that Mr Smith's property is now worth 50% of what he paid in 2004. Just for reference, in my market of Poinciana Florida, the value would have declined about 80% during this period. 50% is being conservative in the hardest hit areas. Anyway......

The initial loan was for $160,000. 32% is guaranteed by Genworth. That's $51,200. The insurance payout is $51,200 whether foreclosure, Short Sale or Deed in Lieu.

The Short Sale request is for $90,000. This amount is the purchase price of $100,000 (Fair Market Value) minus 10% in selling costs.

In this scenario the Investor will get $90,000 + $51,200 = $141,200. Plus any incentives like HAFA. ***By the way, interest on a 30 year loan at 6.5% for the first 5 years is over $60,000!!! So the Investor will actually MAKE money on this Short Sale.

The Lender/Servicer, Wells Fargo, also made money. They made money when they initiated the loan. When they sold the loan. And when they serviced the loan.

The loser is the Mortgage Insurance Company. They are being asked to pay out $51,200. To offset this they may very well ask Mr Smith to make a cash contribution and/or sign a promissory note. If he refuses then MI may choose to offset their loss by allowing the property to go to foreclosure. MI can then pay out the same $51,200 in the future using future money. This is the time value of money.

In this Short Sale example the only entitty that lost money is the MI Company!!!

The lesson here is: When the MI Company requests a cash contribution and/or a promissory note the Borrower will more than likely have to pay something or the Short Sale will be denied. Get it?

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Housing Prices Drift Lower

12433921097?profile=originalFrom January to February prices fell 1.6 percent on a seasonally adjusted basis, according to the monthly House Price Index published by the Federal Housing Finance Agency.  The previously reported 0.3 percent decrease in January was revised to a 1.0 percent decrease.  For the 12 months ending in February, U.S. prices fell 5.7 percent.  The U.S. index is  18.6 percent below its April 2007 peak and roughly the same as the February 2004 index level.

The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac.  For the nine Census Divisions, seasonally adjusted monthly price changes from  January  to February  ranged from  -3.7 percent in the Mountain  Division  to  -0.6 percent in the  East  South Central Division.


 FHFA Press Release


Craig Roberts, President of Pennsylvania First Settlement Services LP, is a Certified Land Title Professional (CLTP), past-President of the Pennsylvania Land Title Association, and is a licensed title agent and real estate broker in the Commonwealth of Pennsylvania.


Pennsylvania First Settlement Services is a full-service title insurance agency serving the greater Pocono area of northeastern Pennsylvania.  Its services include title searches, title insurance, real estate settlements, foreclosure research, documents services and short sale assistance.

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Short Sale Resources - PA 1st Settlement



Information & Reports

Mortgage Servicer Loss Mitigation Contact List

Housing Scorecard – HUD/US Treasury

Servicer’s Handbook – HAMP

Guides & Tips

PA 1st – Short Sale Assist – Required Information

10 Tips to a Successful Short Sale – Bank of America

Equator Guide: Mastering the Short Sale Processing System – Bank of America

Short Sale Quick Reference Guide – Bank of America

Traditional Short Sale Guide for Agents – Bank of America

What to Do Once You Receive a Short Sale Offer – Bank of America


Bank of America – Agent Short Sale Support

Chase – Agent Short Sale Support (Agents area)

Foreclosure Statistics – RealtyTrac

HAFA Information – HAMP Government site

NAR – Short Sale Resources

Servicers Contact List (HAMP-participating Servicers)

Short Sale Superstars


Equator Short Sale Tips & Best Practices by Kevin L. Kauffman – ActiveRain

Selling Underwater by Craig Roberts: Part 1 – HAFA Part 2 – HAFA Nuts & Bolts


Freddie Mac Short Sales Webinar (Sept. 2010)

Freddie Mac HAFA Shorts Sales (Sept. 2010)

HAFA: Fannie Mae, Freddie Mac Short-Sale RulesDownload Slides (PDF: 588K) (July 29, 2010)

Understanding HAFA: Home Affordable Foreclosure Alternatives ProgramDownload Updated Slides (PDF: 267K) (Apr. 2, 2010 - NAR)

President’s Podcast: Short Sales Strategies (Oct. 6, 2009 – NAR)

President’s Podcast: Urging REALTORS® to Get “Schooled” (Sept. 1, 2009 – NAR)

Finding Income in a Tough Market Webinar (NAR)

Finding Income in a Tough Market Webinar, Part 2 (NAR)


Sessions from NAR 2010 Annual Conference & Expo, New Orleans, LA:

Short Sales: Is HAFA the Answer?

Navigating the Short Sale Landscape

Note: Links open to a promo feature.  Select video from right-hand sidebar menu.


 Visit us at







Updated 4-19-11

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On this particular property I have been through 2 different Buyers and 4 appraisals, 2 by the lender.  I know for a fact that all 4 came in around the same price.  There is a 2nd and a 3rd which have been negotiated and approved.  The Buyer is willing to contribute to the balance of the 2nd and the 3rd so there will be no deficiency notes.  After we did everything that PNC Mtg requested from the "investor" BoA they came back to say they would rather go to foreclosure.  Under the new law don't they have to accept a 100% plus offer on the appraised value.  We did not ask for .88% even.  I believe that they "investor" can not produce the note and the mortgage to show clear chain of Title.  Who can I contact?

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Sometimes I really wonder if people, no matter how hard I stress the importance of submitting supplemental documentation in a timely manner, really see the urgency in the situation.


Day 1 of request:  Hi, Mr. Seller The bank is requesting this form to be filled out and they need it back in 4 days.

Day 2, Hi Mr. Seller Have you filled out that form for your lender? Could you send it back to me ASAP

Day 3, Mr. Seller it is imperative to get that form back to your lender tomorrow. They need it to process the short sale.

Day 4, Mr. Seller If you do not fill out that form and return it to me today, the lender is reserving its right to proceed with a deficiency judgement.  


Let's just see if the Day 4 conversation does anything!!!!


Bobbie Files, C.D.P.E.
Certified Distressed Property Expert
Your Bristol and Plymouth County Realtor
508-238-5000  x.296 Office
508-521-9480                Direct / SMS
888-570-9907               Toll Free Direct Fax Email

Visit my website at

Visit my YouTube Channel at

Join My Facebook Community

Search for Berkley Ma Homes at:

Search for Taunton Ma Homes at:

For those struggling to pay your mortgage payments please visit:

Certified Distressed Property Expert


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Chase just approved this Destin Florida townhome for short sale.  The process was a challenge. There were past due association fees and a judgment recorded in Walton County.  In Florida, a property cannot be sold unless liens and judgments are paid or "released" at closing.  Here is how we tackled the short sale:

1. Chase. The Chase part of the short sale was pretty straightforward.  The negotiator was difficult to reach, and I attempted calling her several times over the course of a few weeks.  When I finally spoke with her, she told me her files had doubled in the last two months and Chase was behind processing their short sales.  The best way to reach her was by fax.  After making contact, Chase approved the file fairly quickly. It pays to be pleasant on the phone, by the way!

2. The Judgment.  In order to close on the Destin Florida short sale, the title agent needed a partial release from the creditor.  The creditor agreed to the release in exchange for a small cash contribution from the seller.

3. The H
omeowner's Association.  There were about $16,000 in past dues owed.  Chase would pay half.  Would the association agree to settle for less?  I asked the seller to contact the association directly and mention Florida Statute 720.3085.  It stipulates:

 Notwithstanding anything to the contrary contained in this section, the liability of a first mortgagee, or its successor or assignee as a subsequent holder of the first mortgage who acquires title to a parcel by foreclosure or by deed in lieu of foreclosure for the unpaid assessments that became due before the mortgagee's acquisition of title, shall be the lesser of:

1. The parcel's unpaid common expenses and regular periodic or special assessments that accrued or came due during the 12 months immediately preceding the acquisition of title and for which payment in full has not been received by the association; or

 2. One percent of the original mortgage debt. 


Given that $8000 was more than a year back dues, I thought the association would be delighted to "settle" and get a new paying owner.  They were. 

If you are contemplating a Destin Florida short sale to avoid foreclosure, be sure to contact an attorney and an experienced Destin Florida short sale agent


It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy:

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog


Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

 IMPORTANT NOTICE: Rulnick Realty, Inc. is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.


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By Elizabeth Braman
Commercial borrowers are now able to refinance existing loans to 90% using the Small
Business Administration's 504 loan program, thanks to a new law enacted on September
27, 2010. This law brought about significant changes to the SBA's lending guidelines.
Most significantly, SBA loans now create opportunities for overleveraged property
owners to refinance into lower rate, stable, long‐term commercial mortgages.
The 504 program recognizes that dropping property values have made refinancing
difficult for many property owners. Accordingly, owner occupied properties can now be
refinanced up to 90% of the appraised value OR 100% of the outstanding mortgage,
whichever is less.
To help properties that are overleveraged, the SBA now permits borrowers to use
additional collateral, such as a home, equipment or another commercial property, to use
as part of their 10% required equity.
SBA 504 loans were primarily used to purchase commercial real estate by small business
owners who occupied at least 51% of their property. The funds can now be used to also
refinance properties, including debt acquired in support of a commercial real estate
project such as machinery, equipment and leasehold improvements, plus eligible
refinancing costs and prepayment penalties.
In addition to the refinance component, the SBA is seeking to reach more middle market
companies by increasing several of the borrowing thresholds for the 504 program. Now
qualified companies with a tangible net worth of $15,000,000 (up from $7,000,000) or
less will qualify for an SBA loan as long as their last two-year average after-tax net
revenue is under $5,000,000 (up from $2,500,000). The SBA’s share of the 504 loan has
increased to $5,000,000, except for manufacturers who can finance up to $5,500,000.
The SBA’s 504 program’s current lending terms:
90% leverage with two loans; a first loan at 55-65% leverage offered by a conventional
lender on conventional loan terms (variable, 3, 5, 7 and 10 year fixed loans with 20-25
year amortization periods) and a second loan, which is a fixed 10 or 20 year debenture
(4.894% for 10 year and 5.93% for 20 year in March 2011). The borrower is required to
bring the remaining 10-15% equity to the project.
In a controversial and widely criticized move, the SBA 504 refinance program initially
could only be used to refinance loans that were due on or before December 2012 with a
balloon payment. This requirement left out many property owners with loans due beyond
December 2012, including many of the 5+5 year loans written in 2006 and 2007 that are
due for a rate adjustment this year but don’t have immediate balloon payments. Now,
with a change that will be published in The Federal Register by April 6, 2011, all loans
will be available for refinance as long as they otherwise meet the additional eligibility
There are a number of requirements for borrowers to qualify to refinance under the 504
The property must have been financed more than 24 months prior to a refinance.
The loan has a balloon payment.
The borrowing business has continued operations over the previous 24 months.
The refinance cannot be used to take out an existing government loan, such as
other SBA 504 or 7A loans or USDA loans.
The loan to be refinanced must be current for the last 12 months.
The loan to be refinanced must have been used to purchase real estate, or if
improvements, only those eligible under 504 guidelines.
The SBA does not lend any funds directly. Rather, the SBA works with a Certified
Development Company (CDC), which is a private, nonprofit corporation. The CDC
secures the second lien debenture, which is 100% guaranteed by the SBA.
At present, applications to use SBA 504 refinance funds must be approved by the SBA
before the end of September 2012. The SBA estimates 20,000 businesses could be
eligible to receive assistance with $15 billion in financing, increasing to $30 million with
leverage offered by the banks.

Elizabeth Braman, JD, MBA, CCIM is president of Los Angeles-based Watermark
Financial, Inc., a commercial real estate financing firm. Contact her at
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American Homeowner Preservation recognized the superior performance of Denisse Bays, recently promoted to Transaction Coordinator. Michelle Weadbrock, previously commended for fantastic service, handed off the AHP "Outstanding Employee" Cup to Mrs. Bays in a  brief ceremony. AHP offers a novel foreclosure prevention program designed to keep families at risk of foreclosure in their homes. AHP negotiates with existing lenders to approve short sales to investors, who provide affordable leases and favorable repurchase options to selling families. Families then receive counseling to prepare them to qualify for financing to repurchase within the 5-year option period.
"I really admire what is done here for families in need, and I'm definitely glad to be part of this team," said Bays. "I am pleased to be recognized for my contribution to AHP." Originally from Venezuela, Bays has lived in the Cincinnati area for three years. She resides in Kentucky and doesn't mind braving the traffic every morning and afternoon to come to work, where she knows she is making a difference. After a long day at work she goes home to her husband and kids and likes to relax watching American Idol or occasionally going out to dance.
"Denisse rapidly builds rapport with AHP clients and has shown a great talent for helping solve families' housing predicaments. She is detailed, focused and determined. Being bilingual has been particularly helpful, as AHP has a great deal of Spanish-speaking clients," said AHP Director Jorge Newbery. "We are thrilled to have Denisse on AHP's team."

Close to 140 families across the U.S. have found permanent solutions to their housing dilemmas through American Homeowner Preservation. Monthly housing payments are reduced by an average of 40% through AHP's program. In addition, families can repurchase their homes at an average of less than half of their prior mortgage balances.  Interested families are encouraged to visit or call 800-555-1055 to learn more.
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CINCINNATI, OH - April 12, 2011 –

The Better Business Bureau recently gave foreclosure prevention company American Homeowner Preservation (AHP) an "A" rating. AHP provides a short sale leaseback program to families who owe more than their homes are worth.  When existing lenders approve, families are able to short sell and stay in their homes with lease payments averaging 40% less than prior mortgage payments. In addition, participants receive an option to repurchase their homes at amounts averaging 54% less than what was owed on their underwater mortgages

"Every family has a unique set of circumstances, dictating a customized resolution. Government, banks and servicers have tried to apply one-size-fits-all solutions to these millions of families, and the results have been miserable for all involved," said American Homeowner Preservation Director Jorge Newbery. “The solutions offered to families are tailored as solutions for the banks and then are imposed on the families. The reverse is what works: find a solution for each individual family, and then try to make it work for the bank," Newbery continued. "We are encouraged by the 'A' rating from the BBB."

23% of all residential properties with a mortgage are underwater with an aggregate $750 Billion Dollars of negative equity, according to a March 2011 CoreLogic report. "The 11.1 Million homes at risk of foreclosure could result in the largest displacement of American families in history," said AHP's Michelle Weadbrock. "Our goal is to keep these families in their homes with affordable leases and favorable options."

AHP does not charge fees to homeowners. Families seeking assistance are encouraged to contact AHP at (800) 555-1055 or

Jorge Newbery
American Homeowner Preservation
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"We were introduced to your program by Gil Bivens of Aztec Financial in Phoenix, Arizona. The entire process was surprisingly very simple. When Gil gave us an initial presentation about the program and how much money we were going to save, it was hard to believe that the bank would allow us to sell our house to an investor and allow us to buy it back at its market value, which was estimated at about $30,000.00, compared to what we owed $152,000. We can now buy our house back for about $36,000 for a huge savings of about $116,000. Our monthly payment went from $1,064 to $639.00. Overall, we love AHP for helping us save our home. Bottom line, we are blessed for what AHP has done and would recommend anyone, going through tough times to take a chance and let AHP help them."
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ING Direct, the Dutch-bank and internet-based mortgage lender, has objected to American Homeowner Preservation’s program to keep families in their homes, and ING will no longer consider AHP short sales. “ING DIRECT will also be adding your company to our exclusionary list as your company strictly finds investors to keep sellers in their home, while the bank takes a significant loss.  This is against ING DIRECT’s short sale policies and guidelines, and as such you will no longer be able to work on this short sale file or any future ING DIRECT accounts,” Adam Agostinelli of ING Direct Retail Asset Management advised in an email to AHP.
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NAR: U.S. bill would speed short sales

I found this in our FAR newsletter today:

NAR: U.S. bill would speed short sales WASHINGTON – April 14, 2011 – A new bill introduced into the U.S. House Tuesday would, if it becomes law, improve the process for approving short sales, bringing relief to distressed homeowners who can’t keep their homes and hope to avoid foreclosure.

The bill, supported by the National Association of Realtors®  (NAR), would impose a 45-day deadline on lenders to respond to short sale requests. The legislation – “The Prompt Decision for Qualification for Short Sale Act of 2011” – was offered in Congress by U.S. Reps. Tom Rooney (R-Fla.) and Robert Andrews (D-N.J.).

“Realtors and consumers continue to raise issues about delays in the short sale process, because lenders are unable to decide whether to approve a short sale,” says NAR President Ron Phipps. “After many months of delays, and with no response from lenders, potential buyers lose patience and cancel their contracts, often resulting in the property entering foreclosure. A short sale minimizes the negative impact on sellers and generally costs the lender less than a foreclosure.”


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Military Short Sale

I had to deal with a bank for a borrower who is in the military, and we all appreciate and respect these military people, as they are our protectors. How can a bank, state, "unless we have a copy of the borrowers orders, stating that he must live a certain distance from home to base, we will not even consider a short sale". as we all know, military files are "Classified/confidential" and cannot and will not be handed to a bank for any reason whatsoever. Common sense, at least I think so.  So the bank would rather just foreclose. This is so nice to hear that our banks would rather just put our military out on the street rather than help them.  Well, I had to and did scream loud enough and made myself heard and now I am happy that my client and his family, a military person, will not be thrown out in the street. Sometimes you have to wonder, what kind of people are working at these banks and do they really know what they are doing or just pretending.
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As a Short sale Specialist, I have never dealt with such a bunch of unmotivated employees at Tremont Credit Union, who not only are so disorganized, but would rather foreclose on a borrower, instead of trying to, #1, possibly and likely obtain more money from a short sale; #2, take a chance that if the home becomes foreclosed on and then becomes vacant, there will be a possibility that the home could be vandalized, etc., when winter comes upon us, again, there could be possible pipe bursting, etc, causing even more damage and less value to the home. Why in the world would Tremont Credit Union reject a Short Sale and not counter offer. Isn't something more, better than something less?  At least in my world it is. Even if you try and ask the Chair person and believe it or not a Board member to help, guess what, they are all for it, but then choose to ignore you after the fact. We know that banks are not happy about attorneys negotiating the short sale files, as it will cost more money out of their pocket, but, Tremont Credit Union has left me no choice, so I guess they have the extra money to spend. My only concern is, that is not what I read in the business news a few weeks ago, so again, I am quite baffled.
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